ASSESSING THE ELECTRONIC

MANUFACTURING INDUSTRY SUPPLIERS

READINESS TOWARDS GREEN TECHNOLOGY

IMPLEMENTATION

MOHD NIZAM BIN SAMSUDIN

UNIVERSITI SAINS MALAYSIA

2015

ASSESSING THE ELECTRONIC MANUFACTURING INDUSTRY

SUPPLIERS READINESS TOWARDS GREEN TECHNOLOGY

IMPLEMENTATION

by

MOHD NIZAM BIN SAMSUDIN

Thesis submitted in fulfilment of the requirement

for the degree of Master of Research

JULY 2015

ii

ACKNOWLEDGEMENT

Praise be to Almighty God ALLAH for His Guidance

and Blessing without which Life is Meaningless

Grateful, all praise to Allah. Despite the obstacles that I went through during

the Master by Research study, with HIS permission and grace, I managed to

complete this research successfully. Although the front cover of this thesis only has

my name on it, I humbly acknowledged the help, contribution and supports given by

numerous parties to make the completion of this study a reality. Here, I wish my

sincere gratitude and heartiest appreciation to those who directly or indirectly helped

me along this lively but sometimes, lonely journey.

In the process of completing this report, many people have generously

giventheir time and help. First and foremost, I would like to express my deep

gratitude tomy supervisor, Associate Professor Dr. Mohd Wira Mohd Shafiei for

being very supportive and helpful throughout the research. I also wish to extend the

thanks to all the members of staff (past and present) in the School of HBP,

Universitit Sains Malaysia for any help that may have been given to me for sharing

much experience, support, help and understanding. I also dedicate my thanks to the

Ministry of Higher Education Malaysia who had borne my entire academic tuition

fees under the government’s My Brain15 Programme.

Finally, I dedicated this Master of research to my parents, Samsudin Awang

and Kalesom Kechik for the devotion, education, and endless pouring of love from

the first day I was born into this world.

iii

TABLE OF CONTENTS

Acknowledgement............................................................................................

Page

ii

Table of Contents.............................................................................................. iii

List of Tables.................................................................................................... x

List of Figures................................................................................................... xii

List of Abbreviations........................................................................................ xiv

Abstrak (Bahasa Malaysia)............................................................................... xiv

Abstract (English)............................................................................................. xv

CHAPTER 1: INTRODUCTION

1.1 Introduction............................................................................................. 1

1.2 Research Background.............................................................................. 1

1.3 Problem Statement................................................................................... 4

1.4 Objectives................................................................................................ 6

1.5 Significance of Research........................................................................ 6

1.6 Limitations & Scope............................................................................... 7

1.7 Organisation of the Thesis…………………........................................... 8

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction.............................................................................................. 10

2.2 Theory of Readiness................................................................................ 10

2.3 Change Management............................................................................... 15

2.4 Organisational Change............................................................................. 17

iv

2.5 Internal Organisational Change............................................................... 21

2.5.1 Individual Attributes................................................................... 22

2.5.1(a) Willingness................................................................ 23

2.5.1(b) Beliefs & Attitudes................................................... 24

2.5.1(c) Perception.................................................................. 26

2.5.2 Organisational Characteristics.................................................... 27

2.5.2(a) Organisational Structure........................................... 29

2.5.2(b) Organisational Culture.............................................. 31

2.5.2(c) Organisational Climate............................................. 33

2.5.2(d) Organisational Resources…..................................... 37

2.6 Introduction of Electronic Industry…..................................................... 38

2.6.1 The Workflow Development for Electronic Industry.................. 39

2.6.2 Logical Data Model to Support an Environmental Management

System within an Electronic Industry.........................................

39

2.6.3 A Substrate less Process for Sustainable Manufacture of

Electronic Assemblies................................................................

40

2.7 Background of GreenTechnology............................................................ 41

2.7.1 Environmental Pollution…………………................................. 43

2.7.2 “Greenhouse” Effect…………................................................... 44

2.7.2(a) What is exactly the “Greenhouse” Effect.................. 44

2.7.3 Ozone Layer................................................................................. 45

2.7.4 Factors Related Accelerated Climate Change............................. 46

2.7.4(a)

Global Warming....................................................... 46

2.7.4(b) Renewable Energy for Rural Social and Economic

Development.............................................................

47

v

2.7.5 Barriers to Green Technology Innovation in Large and

Medium-Sized Enterprises.........................................................

47

2.7.6 Constructing Green System of Engineering Experimental

Teaching Based on Virtual Instrument Technology..................

48

2.7.7 Application of Green Technologies in Developing Countries —

Reduced Carbon Emission and Conservation of

Energy..........................................................................................

48

2.7.8 Readiness of the Electronic Industry to Implement Green

Technology..................................................................................

49

2.8 Summary...................................................................................... 51

CHAPTER 3: THE READINESS THEORY AND ELECTRONIC

MANUFACTURING INDUSTRY SUPPLIERS

3.1 Introduction............................................................................................. 52

3.2 Theory of Readiness…............................................................................ 53

3.3 Change Management…........................................................................... 60

3.4 Organisational Change………................................................................. 62

3.5 Internal Organisational Factors……………………................................ 67

3.5.1 Individual Attributes…………………........................................ 68

3.5.1(a) Willingness............................................................... 70

3.5.1(b) Beliefs and Attitudes................................................ 72

3.5.1(c) Perception................................................................. 77

3.5.2 Organisational Characteristics.................................................... 79

3.5.2(a) Organisational Structure........................................... 80

3.5.2(b) Organisational Culture.............................................. 81

vi

3.5.2(c) Organisational Climate............................................ 85

3.5.2(d) Organisational Resources........................................ 87

3.6 Electronic Manufacturing Suppliers Industry Readiness......................... 90

3.7 Summary.................................................................................................. 94

CHAPTER 4: RESEARCH METHODOLOGY

4.1 Introduction............................................................................................. 95

4.2 Conceptual Framework............................................................................ 95

4.3 Hypothesis Development......................................................................... 100

4.3.1 The Relationship between Individual Attributes and Electronic

Manufacturing Industry Suppliers Readiness..............................

100

4.3.2 The Relationship between Organisational Characteristics and

Electronic Manufacturing Industry Suppliers Readiness............

101

4.4 Research Design...................................................................................... 102

4.4.1 Sampling Procedure.................................................................... 104

4.4.2 Data Collection Process.............................................................. 108

4.5 Instrumentation........................................................................................ 110

4.5.1 Measurements & Instrumentation............................................... 113

4.5.2 Measurement & Operationalization of Variables........................ 113

4.5.2(a) Individual Attributes.................................................. 115

4.5.2(b) Organisational Characteristics.................................. 117

4.5.3 Electronic Manufacturing Industry Suppliers Readiness........... 119

4.5.4 Summary of Variables and Measurement of Instruments........... 120

4.5.5 Reliability Analysis of Instruments............................................. 121

4.5.6 Analysis of Validity of Instruments............................................ 123

vii

4.6 Statistical Analysis.................................................................................. 124

4.6.1 Descriptive Analysis................................................................... 125

4.6.2 Factor Analysis............................................................................ 125

4.6.3 Correlation Analysis.................................................................... 126

4.6.4 Regression Analysis.................................................................... 126

4.7 Traceability and Processes....................................................................... 127

4.8 Summary.................................................................................................. 128

CHAPTER 5: DATA ANALYSIS & FINDINGS

5.1 Introduction............................................................................................. 129

5.2 General Information................................................................................ 130

5.2.1 Profile of Respondents................................................................ 130

5.2.2 Profile of Organisational Electronic Manufacturing Industry

Suppliers......................................................................................

133

5.3 The Test of Assumptions – Linearity, Normality, Homoscedasticity

and Multicoloinerity Conditions of the Data...........................................

134

5.4 Relationship between Readiness Factors and Electronic Industry

Suppliers Readiness……………….........................................................

140

5.4.1 Relationship between Individual Attributes and Electronic

Manufacturing Industry Suppliers...............................................

142

5.4.2 Relationship between Organisational Characteristics and

Electronic Manufacturing Industry Suppliers Readiness............

142

5.4.3 Summary..................................................................................... 143

5.5 Assessing the Readiness of Electronic Industry Suppliers to Implement

on Green Technology Implementation……………................................

144

viii

5.5.1 Dimension of Readiness: Optimism............................................ 148

5.5.2 Dimension of Readiness: Innovativeness.................................... 149

5.5.3 Dimension of Readiness: Discomfort......................................... 149

5.5.4 Dimension of Readiness: Insecurity............................................ 150

5.5.5 Extent of Electronic Industry Suppliers Readiness in Terms of

Green Technology Implementation............................................

151

5.5.6 Summary..................................................................................... 152

5.6 Contents of Readiness………………...................................................... 153

5.6.1 Factor analysis for Independent and Dependent Variables......... 153

5.6.1(a) Individual Attributes.................................................. 155

5.6.1(b) Organisational Characteristics................................... 157

5.6.1(c) Electronic Manufacturing Industry Suppliers

Readiness...................................................................

160

5.6.2 Reliability Analysis for Instruments of Model............................ 162

5.6.3 The Proposed Theoretical Model................................................. 163

5.6.4 The Implementation of Readiness Content.................................. 164

5.7 Summary.................................................................................................. 167

CHAPTER 6: CONCLUSION AND RECOMMENDATION

6.1 Introduction............................................................................................. 168

6.2 Main Findings of the Study..................................................................... 170

6.2.1 Objective 1: To Determine the Factors That Contributes to the

Organisational Readiness for Change.........................................

170

6.2.2 Objective 2: To Examine the Relationship between the Internal

Organisational Factors and Electronic Manufacturing Industry

172

ix

Suppliers of Green Technology Implementation….....................

6.2.3 Objective 3: To Assess the State of Readiness to Implement

Green Technology among Electronic Manufacturing Industry

Suppliers in Melaka, Malaysia………………………………...

173

6.2.4 Objective 4: To Propose a Check List for Green Technology

Implementation among Electronic Manufacturing Industry

Suppliers in Melaka, Malaysia...................................................

174

6.3 The Fundamental Contributions of the Study.......................................... 174

6.4 Limitation of the Research...................................................................... 175

6.4.1 Generalisation Issues................................................................... 175

6.4.2 Methodological Perspective......................................................... 176

6.5 Research Recommendation...................................................................... 177

References......................................................................................................... 179

Appendices........................................................................................................ 207

x

LIST OF TABLE

Page

Table 3.1 Characteristics of Readiness Segments 93

Table 4.1

Table 4.2

Table 4.3

Number of Electronics Manufacturing Industry Suppliers in

Melaka

Population and Recommended Sample Size of the Study

Measures and Layout of the Questionnaires

106

108

112

Table 4.4 Summary of Variables and Measurement of Instrument 121

Table 4.5 Reliability Level of Instruments 123

Table 5.1 Demographic Profile of Respondents 132

Table 5.2 Profile of Organisational of Electronic Manufacturing Industry

Suppliers

134

Table 5.3 The Guidelines of Correlation Coefficient 141

Table 5.4 Pearson Correlation between Dependent and Independent

Variables

141

Table 5.5 Summary of Test Result of Pearson Product Moment

Coefficient Correlation – Relationship between Readiness

Factors and Electronic Manufacturing Industry Suppliers

Readiness

144

Table 5.6 Characteristics of Readiness Segments 147

Table 5.7 Electronic Manufacturing Industry Suppliers Readiness:

Dimension on Optimism

148

Table 5.8 Dimension of Readiness: Innovativeness 149

Table 5.9 Electronic Manufacturing Industry Suppliers Readiness: 150

xi

Dimension of Discomfort

Table 5.10 Electronic Manufacturing Industry Suppliers Readiness:

Dimensions of Insecurity

151

Table 5.11 Extent of Electronic Manufacturing Industry Suppliers to

Implement on Green Technology Implementation

152

Table 5.12 Summary of Readiness Segments for Electronic Manufacturing

Industry Suppliers Readiness to Implement Green Technology

153

Table 5.13 KMO and Bartlett’s Test for Individual Attributes 155

Table 5.14 Factor Analysis for Individual Attributes 156

Table 5.15 KMO and Bartlett’s Test for Organisational Characteristics 158

Table 5.16 Factor Analysis for Organisational Characteristics 158

Table 5.17 KMO and Bartlett’s Test for Electronic Manufacturing Industry

Suppliers Readiness

160

Table 5.18 Factor Analysis for Electronic Manufacturing Industry

Suppliers Readiness

160

Table 5.19 Reliability Test of Instruments – Cronbach’s Alpha 163

Table 5.20 Multiple Regression Results for Independent and Dependent

Variables (Overall Readiness of Electronic Manufacturing

Industry Suppliers in Implementation Green Technology)

166

Table 5.21 Multiple Regression Results for Independent (Overall

Readiness of Electronic Manufacturing Industry Suppliers)

166

Table 6.1 Summarise of the Study 169

xii

LIST OF FIGURES

Page

Figure 2.1 Determine & Outcomes of Organisational Readiness for

Change

15

Figure 2.2 Workplace Readiness Factors 21

Figure 3.1 An Integrated Model of Readiness for Change 59

Figure 3.2 Workplace Readiness Model 64

Figure 3.3 The Burke-Litwin in Model of Organisational Change 66

Figure 4.1 Proposed Theoretical Framework for Factor that Contribute to

the Electronic Manufacturing Industry Suppliers Readiness to

Green Technology Implementation

99

Figure 4.2 Conceptual Relationship between Individual Attributes and

Electronic Manufacturing Industry Suppliers

100

Figure 4.3 Conceptual Relationship between Organisational

Characteristics and Electronic Manufacturing Industry

Suppliers Readiness

101

Figure 4.4 The Independent and Dependent Variables 115

Figure 4.5 The Construct of Individual Attributes 115

Figure 4.6 The Construct of Organisational Characteristics 117

Figure 4.7 The Construct of Electronic Manufacturing Industry Suppliers

Readiness

119

xiii

LIST OF ABBREVIATIONS

Acronym Detail

BPR Business Process Reengineering

GEO Green Energy Office

PTM Pusat Tenaga Malaysia

ST Suruhanjaya Tenaga

ITA Investment Tax Allowance

ISO International Standards Organization

IEC International Electro Tachnical Committee

SAGE Strategic Advisory Group Environment

WEEE Waste Electrical and Electronic Equiptment

NO Nitrogen Monoxide

CO2 Carbon Dioxide

SO2

RE

Sulphur Dioxide

Renewable Energy

GHG

GT

Greenhouse Gases

Green Technology

TR

SSTs

WCED

EMIS

Technology Readiness

Self-Service Technologies

World Commision on Environment and Development

Electronic Manufacturing Industry Suppliers

xiv

MENILAI KEBERSEDIAAN PEMBEKAL-PEMBEKAL INDUSTRI

ELEKTRONIK KEARAH PERLAKSANAAN TEKNOLOGI HIJAU

ABSTRAK

Kesan dan akibat daripada pemanasan global terhadap bumi telah menyeru

komuniti antarabangsa untuk mengambil langkah-langkah drastik. Salah satu langkah

penyelesaian yang dicadangkan oleh The Intergovernmental Panel of Climate

Change (IPCC) adalah pengenalan kepada teknologi hijau. Kajian ini bermatlamat

untuk menilai tahap kesediaan pembekal-pembekal industri pembuatan elektronik di

Melaka dalam penerimaan teknologi hijau. Satu kajian menggunakan struktur soal

selidik telah dijalankan terhadap kumpulan responden di Melaka. Sampel responden

diambil daripada senarai pembekal industri pembuatan elektronik dalam Yellow

Pages Directory. Sejumlah 309 soal selidik telah diedarkan dan 202 soal selidik

responden yang lengkap telah dipulangkan; menghasilkan keputusan kadar respon

sebanyak 65.37%. Regresi berganda standard telah digunakan untuk mengkaji

hubungan di antara faktor-faktor dalaman dengan tahap kesediaan pelaksanaan

teknologi hijau di kalangan pembekal industri pembuatan elektronik di Melaka.

Hasilnya, kajian ini mencadangkan agar pembekal-pembekal industri pembuatan

elektronik di Melaka bersiap sedia untuk menerima perubahan ke arah pelaksanaan

teknologi hijau. Penerimaan dan perubahan menyeluruh institusi pembuatan elektrik

ke arah pelaksanaan teknologi ini akan tercapai sekiranya semua pemegang saham

dalam sektor ini bersedia untuk melaksanakannya.

xv

ASSESSING THE ELECTRONIC MANUFACTURING INDUSTRY

SUPPLIERS READINESS TOWARDS GREEN TECHNOLOGY

IMPLEMENTATION

ABSTRACT

The effects and consequences of global warming to the earth call for drastic

actions to be taken by the international communities. One of the solutions proposed

by the Intergovernmental Panel of Climate Change (IPCC) is the introduction of

green technologies. This research attempts to establish the state of readiness of

electronic manufacturing industry suppliers in adopting green technologies. A survey

by using structured questionnaire was conducted on a group of respondents in

Melaka. The sample was derived from the list of electronics manufacturing industry

suppliers in Yellow Pages Directory. A total of 309 questionnaires were distributed

and 202 respondents completed and returned; which resulted in 65.37% response

rate. Standard multiple regression was used to investigate the relationship between

internal factors and a level of readiness among of electronics manufacturing industry

suppliers in implementing green technologies in Melaka. As a result, this study

suggested that the electronic manufacturing industry suppliers in Melaka are ready to

adopt the change towards green technology implementation. Only after all the

stakeholders in manufacturing sectors are ready to implement green technology, will

the adoption and institulisation of green technology in the electronic manufacturing

industry be a reality.

1

CHAPTER 1 INTRODUCTION

1.1 Introduction

Electronic industry is a system that involves the production, delivery, storage,

distribution and sale of products in order to meet the demand of the product.

Electronic manufacturing industry suppliers including all the processes and activity

involve in delivering the product to reach the consumer. All production processes,

including manufacturing, transportation system that move the product from the

manufacture of up to branch distributors and retailers, product storage warehouse,

distribution centre where the place of delivery in large quantities are divided in to

small quantities to be shipped back to the stores and eventually reach to retailers that

sell these products.

Electronic manufacturing industry suppliers are the methodology of arranging

actualising, and controlling the operations with the reason to fulfil client necessities

as effectively as would be prudent. Electronic manufacturing industry suppliers

compasses all development and capacity of crude materials, work-in-methodology

stock, and completed merchandise from purpose of-birthplace to purpose of-

utilisation.

1.2 Research Background

According to Abu Bakar et al. (2011), "Green Technology" is an activity

advancing different sorts of philosophies and materials improvement, from

procedures for creating energy to non-lethal cleaning items. There is a steadily

2

expanding societal push for natural friendly environmental systems to help reduce

the effect coming about because of fossil fuel utilisation, landfill and industrial

division wastages. Current investigates by industry teams are seeking after and

investigating the option for environmentally friendly power energy sources and

production. Governments and World Energy Council (WEC) are playing the key

parts to create and actualise a wide-size of green technology endeavours that address

the issues of society through uncertain routes into the future without harming or

reduce natural resources.

The impacts of environmental change, alongside contamination and the

consumption of non-renewable characteristic assets, has offered ascent to natural

mindfulness (Douglas, 2006). A key worldwide challenge in the 21st century is the

means by which to address environmental change and to reduce greenhouse gas

emmissions (UN, 2007). Accordingly, arrangements that emphasis on the protection

of nature are constantly being created around the world (Brunoro, 2008).

In addition of providing an adequate green tchnology implementation, the

government are also aware that the global communities have called all nations to

integrate the environmental factor in the implementing green technology. As a

respond, throughout 10th (2011 – 2015), 11th (2016 – 2020) and 12th (2020 – 2024)

and beyond, as a Malaysia Plan the government gave careful consideration on this

matter by actualising the needs of green technology in light of ecological protection

and conservation. For instance, the 12th Malaysia Plan stated that the needs of green

3

technology implementation in the electronic industry, such as inculcation of GT in

Melaka, Malaysia culture, reduces overall resource consumption while sustaining

national economic growth, improvement of Melaka, Malaysia’s ranking in

environmetal ratings. Melaka, Malaysia can be a major producer of GT in the global

market, and expansion of internationals collaborations between local universities and

research institutions with GT industries (KETHHA, 2010). These moves are in

accordance with the proposal made by the WCED who expressed that the financial

productions ought to be dependable to an environmental basic to guarantee the

assurance of ecosphere, and a social value basic to decrease human suffering (Berke

and Conroy, 2000).

From the discussion above, it can be concluded that the electronic manufacturing

industry have a fundamental economic function to play in the Melaka, Malaysia

electronic industry. Given the speed of trade globalisation, the advancement in

science and technology, and on-going initiatives to improve society, it is essential the

electronic manufacturing industry suppliers concept in be fully players as well as

customers. It will be appropriate to understand on how the electronic manufacturing

industry suppliers will impact on transforming the society towards having a superior

personal satisfaction. Usually, the measurements of life hold by individuals are

numerous which incorporate training, nourishment, vocation, vitality, environment,

well-being, human rights, salary, base, national security, open security, re-creation

and asylum (Henderson, 2001).

4

1.3 Problem Statement

Before this, organisations assumed that consolidating "green" into their

business strategy would cost cash, yet they now understand that overlooking negative

effects on the earth will be excessive later on (Van der Zee, 2008). The motivation

behind making strides toward environmental friendliness is to utilise products and

techniques that would not adversely affect the earth through contamination or reduce

normal assets (Robinson ,2008). In the event that the utilisation of natural resources

is decreased by utilising option sources, it will have positive results, such as, keeping

the natural footprint small, decreasing waste and re-utilising materials as much as

possible (Dallas, 2008). Moreover, it will shown the result that the natural resource

will used efficiently and effictively. Green electronic manufacturing industry

suppliers ought to have green dreams, with key arrangements based on long haul

goals instead of just short terms objectives (Gunningham, Kagan & Thornton, 2003).

Previously, organisations expected that joining "green" into their business

strategy would cost money, however they now understand that disregarding negative

effects on the earth will be costly later on (Van der Zee, 2008). The Melaka,

Malaysia electronic manufacturing industry suppliers had long been mindful towards

the issues of environmental protection. Thus, the Melaka, Malaysia electronic

manufacturing industry has been asked to receive new methodology to fortify its

establishments to face present and future challenges (Robinson, 2008). Clem (2008)

includes that practicing green environmental awareness mirrors a social cognizance

around saving, propelling the Earth's natural resources, saving and ensuring them for

the purpose of civilisation.

5

The electronic industry player has been challenged to enhance the

productivity and quality by implementing sustainable practices. In this scenario,

green technology implementation is viewed as the change element that can become

the indicator of the electronic manufacturing industry suppliers readiness towards

green technology implementation for advanced technological change. In addition,

this research has been done on the readiness assessment of electronic manufacturing

industry suppliers in Melaka, Malaysia to respond to the change in their operating

environment. Thus, this study is to design to fill this knowledge gap.

Previous researchers had highlighted the barriers of sustainable development

in the electronic manufacturing industry suppliers (Landman, 1998) listed these

barriers as the lack of interest from the electronic industry, lack of training related to

sustainable design, higher cost, difficult to obtain financing from the banks for

sustainable projects and unavailable information on sustainable methods. In the same

Baker (2006) identified that the lack of incentives, unreliable technology, lack of

technical expertise and cost factor have become the reasons why the electronic

manufacturing industry suppliers players are reluctant to build sustainably. It is

important to develop a framework that is specifically tailored to the local scenario

because the previously developed frameworks were based on the experience of other

countries.

6

1.4 Objectives

In line with the problem statement above, the broad objective for the study to

identify the electronic manufacturing industry suppliers at the various levels of some

selected commodities:-

To determine the factors that contributes to the internal organisational

readiness for change.

To analyse the relationship between the internal organisational factors

and electronic manufacturing industry suppliers readiness towards green technology

implementation.

To assess the state of readiness to implement green technology among

electronic manufacturing industry suppliers in Melaka, Malaysia.

To propose a checklist for green technology implementation towards

electronic manufacturing industry suppliers in Melaka, Malaysia.

1.5 Significance of Research

Due to demand competitive pressures, business today is restructuring them to

operate on electronic manufacturing industry suppliers to take advantage of the

markets, business and economy. Most electronic manufacturing industry suppliers

are becoming so sophisticated that in the future they will spend more time in terms

green technology.

A review of the existing frameworks regarding the assessment of readiness

for change revealed that none of them was designed to specifically assess the

7

readiness of individuals or organisations to embrace green technology, not to

mention the green technology implementation. In addition, it is essential to develop a

readiness assessment method that that can be suited to the Malaysian industrial usage

as the country has its own distinctive characteristics that might differ with other

countries.

The knowledge areas enlightened by this study are internal factors that could

best predict the electronic manufacturing industry suppliers readiness in green

technology implementation. From the perspective of practice, the developed

framework can be used as an assessment tool to measure the readiness electronic

manufacturing industry suppliers in green technology implementation. The

framework can directly assist electronic manufacturing industry suppliers in

examining their current state of readiness towards green technology implementation.

1.6 Limitations & Scope

This study is interested to investigate complete electronic manufacturing

industry suppliers, in which, can be classified under three main variables individual,

organisational and electronic suppliers. Based on the preliminary interviews and

literature review, these three main variables are identified to be the most important in

the chain. With the intention to limit the scope of the study, the research respondents

are those electronic manufacturing industry suppliers companies who are registered

with yellow pages directory in Melaka, Malaysia. The data collection for this study

was conducted in one state, namely, Melaka. Some of others not in this research

because due to the time limitation and cost.

8

1.7 Organisation of the Thesis

Chapter 1: This chapter opens the discussion with presenting introduction to

this study. Then, it presents the background information of the thesis, comprising

research problems, research objectives to be achieved, research questions to be

answered, scope and significance of the research, as well as outline of the thesis.

Chapter 2: This chapter reviews the literatures of green technology

implementation. Subsequently, this chapter discussed the concept of green

technology that had been applied in the electronic manufacturing industry suppliers.

Next, the literatures relating to the green technology are presented. Finally, this thesis

presents the global and Malaysian scenario with regards to the green technology

implementation. The literatures on the theory of readiness, change management and

organisational change are reviewed in this chapter. Then, the factors that influence

the readiness and stage of readiness are presented and followed by the conceptual

framework that is used in this study. In the last part of the chapter, the developed

hypotheses are presented.

Chapter 3: The literatures details of the readiness theory, change

management and organisational are applied in this study and presented in this

chapter. Then, the factors that influence the readiness and stage of readiness are

presented. In the last part of the chapter, the developed hypotheses are presented.

9

Chapter 4: The details of the research methodology applied in this study are

covered in this chapter. It explains the research design, the data collection methods and

how the relevant instruments were developed in the present study. Lastly, this chapter

discusses all the analytical techniques used in this study.

Chapter 5: Data analysis, research findings, and reliability and validity of the

constructs were presented in this chapter. The electronic manufacturing industry

suppliers readiness towards the green technology implementation is then discussed.

The summary of research findings is covered at the end of this chapter.

Chapter 6: This section finalise the study by relating the discoveries with the

examination target and theories of the study. It likewise offers the proposals for the

future examination.

10

CHAPTER 2 LITERATURE REVIEW

2.1 Introduction

This chapter deals the survey of the writing in the contextual areas towards

green technology implementation. In the first place, this part talks about the

supporting idea of the study that is readiness of organisation. The chapter then

reviews of the change management and internal organisational. Next, the key studies

in the field of electronic industry background are likewise checked on including

history and current advance in the worldwide point of view and Melaka, Malaysia

perspective. The parts of green technology implementation are exhibited toward the

end of the section. At last, the summary is displayed to finish up the chapter.

2.2 Theory of Readiness

Organisational readiness for change is a multi-level form, and moreover a

multi-faceted one. Specifically, organisational readiness alludes to organisational

individuals refers to organisational members commitment to execute organisational

change (Weiner et al., 2008; Weiner et al., 2009). This definition stated the

conventional languages utilisation the term of readiness, which suggests a condition

of being both mentally and behaviourally arranged to make a move (ready and

capable). Like Bandura's (Bandura, 1997) idea of objective responsibility, change

duty to change refers to organisational members resolved resolve to seek after the

game plans included in change execution. The accentuate imparted resolution in light

of the fact that executing complex organisational changes includes aggregate activity

by numerous individuals, each of whom contributes something to the usage

implementation. Since implementation is frequently a group activity, issues emerge

11

when some vibe focused on usage yet others cannot take after with new execution.

Herscovitch and Meyer (2002) watch that organisational individuals can concentrate

on executing an organisational change in light of the fact that they have to esteem the

change, in light of the way that they have to such as obligation to realise

organisational change.

Like Bandura's (1997) considered total ampleness, change reasonability

suggests organisational individuals conferred feelings in their total capacities to

arrange and execute the diagrams included in change use. Here yet again, underscore

bestowed feelings and total limits in light of the way that execution includes total (or

conjoint) movement among related individuals and work units. Organising

movement transversely over various individuals and social affairs and progressing

progressive learning are incredible instances of total (or conjoint) limits. As Bandura

and others note, sufficiency judgments suggest movement capacities; reasonability

judgments are not one or the other result trusts (Bandura, 1986 & 2000; Maddux,

1995) nor evaluations of learning, aptitudes, or assets (Bandura, 1986). Change

viability is higher when individuals impart a feeling of certainty that on the whole

they can execute a complex organisational change.

In the hypothesis introduced here, organisational structures and asset gifts

shape availability observations. At the end of the day, organisational individuals look

into the organisation’s structural resources and shortfalls in planning their change

viability judgments. Second, organisational preparation for change is situational; it is

12

not a general condition of issues. Some organisational peculiarities do appear to

make a more responsive setting for development and change (Dopson et al., 2002;

Newton et al., 2003 and Pettigrew et al., 1992). Then again, open setting does not

make an interpretation of straightforwardly into preparation. The substance of

progress matters as much as the setting of progress.

An electronic industry organisation could, for instance, display a culture that

values danger taking and experimentation a positive workplace (great electronic

industry connections), and a background marked by effective change execution. Yet,

notwithstanding this open setting, this organisation could at present show a high

preparation to execute electronic industry records, yet a low availability to actualise

an open-access planning framework. Responsibility is, to a limited extent, change

particular; so excessively are viability judgments. It is conceivable that open setting

is an important yet not sufficient condition for availability. For instance, great

electronic industry connections may be important for advancing any change

regardless of the possibility that it does not promise that electronic suppliers will

focus on executing a particular change. The hypothesis proposed here grasps this

probability by viewing open organisational setting peculiarities as could be expected

under the circumstances determinants of availability as opposed to status itself.

Third, the two features of organisational preparation for change responsibility and

change viability are adroitly interrelated and, expected, experimentally connected. As

Bandura (1997) notes, low levels of trust in one's capacities to execute a game plan

can weaken one's inspiration to take part in that strategy. In like manner, as Maddux

(1995) notes, trepidation and other negative motivational states can lead one to think

13

little of or minimise one's judgments of capacity. These cognitive and motivational

parts of readiness are relied upon to covary, yet not to covary perfectly. At one great,

organisational could be exceptionally certain that they could execute an

organisational change effectively, yet demonstrate practically zero inspiration to do

as such. The inverse amasing is likewise conceivable, just like all focuses in the

between. Organisational readiness is prone to be most astounding when

organisational individuals not just need to actualise an organisational change and

additionally feel sure that they can do as such.

On the off chance that creating an imparted feeling of status sounds

troublesome, that is on account of it most likely is. This may clarify why numerous

organisational neglect to create sufficient organisational readiness and, thus,

encounter issues or through and through disappointment when executing complex

organisational change. Although organisational readiness for change is hard to

create, inspiration hypothesis and social cognitive hypothesis recommend a few

conditions or circumstances that may advance it.

Since this hypothesis of organisational readiness for change is pitched at the

organisational level of investigation, a test of the hypothesis forecasts would oblige a

multi-organisation exploration plan in which a set of organisations actualises a

typical, or possibly tantamount, complex organisational change. An extensive

electronic industry framework actualising Six Sigma or lean assembling on a

framework wide premise would give a valuable chance to test the hypothesis. So

14

excessively would a relationship of group electronic industry consenting to execute a

typical multi-part administration project or a gathering of subsidiary strength works

on choosing to actualise a typical electronic industry record.

It is imperative to note that organisational readiness for change is

conceptualised here as an imparted group property that seems to be, a mental state

that organisational individuals hold in like manner (Klein and Kozlowski, 2000). The

degree to which this imparted mental state exists in any given circumstance is an

experimental issue obliging the examination of inside gathering measurements

agreement. On the off chance that sufficient inside gathering understanding exists

(organisational individuals concur in their readiness perceptions), then investigation

of organisational readiness as an imparted group property can continue. In the event

that deficient inside gathering understanding exists (organisational individuals differ

in their preparation recognitions), organisational readiness as an imparted group

property does not exist. Rather, the examiner should either concentrate on a lower

level of examination (group availability) or conceptualise organisational readiness as

a design property and speculate about the determinants and results of intra-

organisational variability in recognitions of readiness (Klein and Kozlowski, 2000).

Finally, as noted prior, most openly accessible instruments for measuring

organisational readiness for change display restricted confirmation of unwavering

quality and legitimacy. As two as of late distributed audits show, a large portion of

the instruments utilised in associate investigated examination were not grown

15

methodically utilising hypothesis, nor were they subjected to broad psychometric

testing (Weiner et al., 2008 and Holt et al., 2006). There are a couple of instruments

have experienced intensive psychometric evaluation. Nonetheless, none of these

instruments is suitable for measuring organisational readiness for change as

characterised above, either on the grounds that they concentrate on individual

readiness instead of organisational readiness, or on the grounds that they treat status

as a general condition of undertakings as opposed to something change particular, or

on the grounds that they incorporate things that the hypothesis exhibited above

considers determinants of status instead of readiness itself (things relating to change

valence).

Figure 2.1: Determine & Outcomes of Organisational Readiness for Change

2.3 Change Management

Change management specialists and researchers have talked about other,

more extensive logical conditions that influence organisational readiness for change.

For instance, some battle that an organisational culture that grasps development,

danger taking, and learning backings organisational readiness for change (Jones et

al., 2005; Chonko et al., 2002). Others stretch the vitality of adaptable organisational

16

strategies and systems and positive organisational climate (great working

connections) in advancing organisational readiness (Eby et al., 2000; Kanter, 1984).

Still others recommend that positive past involvement with change can encourage

organisational readiness (Armenakis et al., 1993). The battle that these more

extensive, logical conditions influence organisational readiness through the more

proximal conditions portrayed previously. Organisational culture, for instance, could

intensify or hose the change valence connected with a particular organisational

change, contingent upon whether the change exertion fits or clashes with social

qualities. Moreover, organisational arrangements and techniques could emphatically

or adversely influence organisational individuals examinations of undertaking

requests, asset accessibility, and situational components. Finally, past involvement

with change could positive or contrarily influence organisational individuals change

valence (whether they think the change truly will convey touted profits) and change

adequacy judgments (whether they think the organisation can successfully execute

and direction change-related exercises).

What is the deciding consequence of this change-related exertion? Drawing

on usage hypothesis, the most proximal result is prone to be viable execution.

Emulating Klein and Sorra (1996), usage adequacy alludes to the consistency and

nature of organisational individuals starting or early utilisation of another thought,

system, process, practice, or innovation. To delineate, when organisational readiness

for change is high, electronic manufacturing industry suppliers will all the more

skilfully and determinedly make a move to put a green innovation practically

speaking and show more reliable, brilliant utilisation of the registry. By

17

differentiation, when organisational readiness for change is low or non-existent,

electronic industry focus suppliers and staff will oppose starting change, put less

exertion into implementation, continue on less despite execution difficulties, and

show agreeable registry use, best case scenario. Without further intercession, registry

utilisation is liable to be irregular, scattered, and uneven.

Change management specialists have underscored the essentialness of

building organisational readiness for change and prescribed different systems for

making it. Not at all like individual readiness for change, has organisational

readiness for change not been liable to broad hypothetical improvement or exact

study. In this article, we thoughtfully characterise organisational readiness for change

and build up a hypothesis of its determinants and results. The concentrate on the

organisational level of examination on the grounds that numerous making a

guarantee to approaches to enhancing electronic industry conveyance involve

aggregate behaviour change as frameworks upgrade that is, different, synchronous

changes in staffing, work process, choice making, correspondence, and prize

frameworks.

2.4 Organisational Change

Change is the development far from a present state to a future state (George

and Jones, 1996) or for the most part a reaction to some critical risk or opportunity

emerging outside of the organisation (Gilgeous, 1997). Today, the business

environment is evolving quickly. The progressions in innovation like

computerisation and e-business have made a quantum jump in information

18

correspondence, work forms and the method for working together. With the

approaching move to globalisation and liberalisation of business sectors,

organisations must be arranged to implement to the fast changes in the business

elements. Each organisation must submit to the fluctuating requests and changes in

the earth. Changes inside an organisation occur in light of business and monetary

occasions and to methodologies of managerial recognition, decision, and activities

where administrators see occasions occurring that demonstrated the requirement for

change (Pettigrew, 1985).

As indicated by Linstone and Mitroff (1994), there were three elements to be

considered in executing change forms, that is the innovative, organisational and

individual viewpoints. Despite the fact that individuals are the most critical figure

rolling out improvement, then again, they are likewise the most troublesome

component to manage (Linstone and Mitroff, 1994). Thusly, dealing with the human

piece of the organisation turns into a significant test in taking care of progress

techniques in the organisation as it includes qualities, inclination, and mentality to a

specific movement. Attitudes, for occasion, are hard to change as individuals are for

the most part more agreeable with what they have realised or knew because of

stereotyping, alarm of going out on a limb, prejudice to vagueness, and perhaps the

need to look after convention (Dunham, 1984; Carnall, 1990).

19

A change in organisation alludes to any adjustment in exercises or errand

(Dawson, 1994). Kanter et al. (1992) characterised change as the procedure of

examining the past to evoke the present activities needed for what's to come. Cao et

al. (2000) accepted that organisational change demonstrated a differing qualities of

the organisation in its surroundings, furthermore the communication of the

specialised and human exercises that had interrelated measurements in the

organisation.

Attitudes can be hard to change once they have been found out (Dunham,

1984). This is on account of there can be imperviousness to change from inside.

Dawson (1994) additionally noted that imperviousness to organisational change may

come about because of one or a mix of variables, such as, substantive change in

employment, decrease in financial security, mental dangers, interruption of social

game plans, and bringing down of status. In any case, it cannot be denied that the

disposition to change by people may vary. Some are more impervious to change

while others are more responsive to change. As indicated by Elizur and Guttman

(1976), there are three sorts of people's or bunch reaction to organisational change:

emotional, cognitive and instrumental. Emotional reaction refers to the inclination of

being connected to fulfilment or restless about change. Cognitive reactions are

feelings identifying with convenience and need and about information needed to

handle change, while instrumental reactions allude to moves officially made or

which will be taken to handle the change. Dunham et al. (1989) likewise proposed

that there are three sorts of mentality to change: emotional, cognitive and

behavioural. The emotional segment comprises of the emotions an individual has to a

20

disposition object, which includes assessment and feeling, and is frequently

communicated as like or aversion for the state of mind article. The cognitive segment

of a mentality comprises of the data an individual have around an individual or thing

which is in light of what an individual accepts is valid. The behavioural inclination

concerns the way an individual plans to carry on to a demeanour object.

A few studies had given bits of knowledge on the effect of inside and outside

components like organisational age, size, and idleness/force on an organisation's

adequacy in reacting to natural (interior/outer) changes (Meyer et al., 1990; Kelly

and Amburgey, 1991; Haveman, 1992; Fox-Wolfgramm et al., 1998). Different

studies had concentrated on the connection between a result or paradigm variables

(like receptivity, safety, responsibility, criticism or stress) and the achievement or

disappointment of organisational change. Iverson (1996) found that a workers

acknowledgement of organisational change increments with organisational

responsibility, a concordant mechanical relations atmosphere, training, occupation

inspiration, fulfilment and security. The worker acknowledgement diminishes with

union participation, part clash, residency and ecological open door. Yousef (2000)

found that certain measurements of organisational duty straightforwardly impact

certain state of mind to organisational change, and employment fulfilment with

specific aspects of occupation specifically and by implication (through distinctive

measurements of organisational responsibility) impacts the diverse measurement of

mentality to organisational change. Tierney (1999) discovered representatives

organisations with their managers and individuals shape their disposition to the

organisation. The workers impression of the change atmosphere inside the

21

organisation is predictable with those of their groups and chiefs. The nature of the

organisation with the chief is essential for workers impression of the change

atmosphere.

Figure 2.2: Workplace Readiness Factors

Source: Muir (1996)

2.5 Internal Organisational Factors

According to Saerue and Zhang (2011) an organisation is a complex

framework that comprises of numerous divisions including one another. In this way,

inner and outside variables can perplexingly affect the organisation. The changing in

these variables can likewise trigger inactive issues of an organisation. On the off

chance that the issues are collected, the organisation can be driven into a precarious

state. Likewise, use internal qualities and outside risks of the authoritative as the

essential control variables for both asymmetry and bifurcation sides. Organisational

responsiveness is a basic component for accomplishment of any business. It obliges

business organisations to comprehend and react to changes in its outer and interior

22

environment. As a result, organisations are obliged to make an element interior

environment. This dynamism is manufactured around trading data and thoughts

identifying with business maintainability, advancement, and development. Venture

advances like ERP frameworks are getting to be more prominent among

contemporary organisations. Usage of these advancements is, accordingly, occupied

with cognizant push to create inner capacities, to utilise the same to deliver outside

difficulties and to seem to be like other advancing organisations. It is imperative that

the organisation consistently assesses itself, to survey how it is going, what are the

execution crevices (if at any rate would it be able to support its operations, and by

what means if it became both inside and additionally remotely. Being responsive,

helps the organisation to view each new innovation venture as an intend to giving an

intelligible perspective of organisational data, considering educated choice making,

and helping the organisation to evaluate, learn, and develop (Pishdad and Haider,

2013).

2.5.1 Individual Attributes

Social Intelligence has been a living idea for a long while as a branch of

Emotional Intelligence and has been utilised as a part of engineering. Its helpfulness

in individual connection has discovered a few applications in creating individual

viability. A few analysts have extended the idea to organisational improvement

(Khan, 2011). Measuring a singular's capability to perform an objective has key

ramifications in organisational studies, behavioural examination, business and

administration among different regions. This relative potential, which is subject to a

horde of components, experience, asset administration, collaboration, and so forth,

could shape the singular's execution, inspiration, authority, and likely achievement

23

(Wigand et al., 2012).

From the studies conducted by many researchers, the organisational member's

willingness, beliefs, attitudes and perception are well accepted as an important factor

in the organisational change (Tuokko et al., 2007). For instance, organisational

member's willingness to change by Wittenstein (2008) and Tuokko (2007) beliefs

and attitudes of organisational member towards change by Barrett et al. (2005), and

organisational member's perception on organisational change by Nah (2003) and Eby

et al. (2000).

2.5.1.(a) Willingness

In our life event of progress is regular while each individual run over a point

where he needs to change. On the off chances that experience the conduct of life the

first change that happens is the point at which one needs to move from the ward life

to wind up autonomous. It takes after that the change is regular. It happens in every

one's life furthermore it happens in the organisational connection that willingness can

be as a positive behavioural towards organisational change (Ven and Poole, 1995).

The change happens in individual life and his response towards that change is

identified with response of progress happening in the work environment (Amenakis

and Bedeian, 1999).

Although organisational change is not a simple job yet it requires an

organisation to have a deeper understanding about right now strategies set up and

24

distinguishing the afflictions the organisation has been facing while executing the

current arrangements and methodology. Organisational change is essential on the

grounds that if the organisations do not change their methods as indicated by the

distinctive changes happening around in nature, then it is extremely troublesome for

an organisation to make due in today's dynamic, testing and consistently evolving

environment. Then again, it may oblige an organisation to appropriately prepare their

representatives and set them up to effectively actualise the obliged change.

Administration must convey their vision to their workers to accomplish their

willingness.

2.5.1.(b) Beliefs & Attitudes

Organisational change can be effectively executed when the workers of the

organisation are certain that they have essential learning and level of abilities needed

to endeavour the endeavours prosperous however in the event that they do not have

the obliged capabilities then they will posture safety against such intercessions and

are not urged to have dynamic cooperation in the entire methodology (Madsen,

2008).

An empowering situation of an organisation will let the people to work all the

more viably and effectively. A backing from the top administration is imperative, on

the grounds that these are the individuals who are in charge of giving the correct

intends to do the work. The most recent administration styles give more vitality to

group building exercises; they urge the representatives to have dynamic contribution

in their assignment. This in exchange makes the work force's vibe that they are being